The paper analyzes the profitability of R&D cooperation under asymmetric spillovers. It is shown that a firm prefers R&D competition to RJV cartelization when its own spillover rate is low and the spillover rate of its competitor is high. While it prefers R&D cartelization to RJV cartelization when the spillover rate of its competitor is sufficiently high. The equilibrium configuration is RJV cartelization for low spillover asymmetries, R&D competition for intermediate asymmetries, and R&D cartelization for high asymmetries.
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Article provided by Economics Bulletin in its journal Economics Bulletin.
Find related papers by JEL classification: L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance O3 - Economic Development, Technological Change, and Growth - - Technological Change
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